Critically Evaluate Why Effective International?
Quality Human Resource Management for the international hospitality industry is important. It has an influence on the brand image and the employee’s performance. Management practices enhanhce performance in the organization. New dimensions reveal the development of complex factors in the service industry because of the global organizations. Several factors from external forces affect the hospitality industry’s internal management. Culture determines the personality attributes of employees in an organization because of the sociocultural influences. Managing people from different cultural backgrounds calls for strategic implementation in order to ensure that the brand emerges as a leader in the business environment. The national legislations provide guidelines for global organizations on how to manage its practices including employment policies. HR practices in a competitive environment also describe strategies that shape the brand. The Human Resource Management is a modern organizational factor that covers a wide discussion. The performance management practices encourage effective employee management through important processes such as recruitment and training. The global hospitality industry has businesses which employee cross border workers. The workers need care and reliable payment. This discussion highlights these strategic Human Resource Management practices together with the challenges in the global environment. It looks at the reward systems and the employment agreements for expatriates and their benefit systems.
Global Human Resource Management
The growth of global organizations continues to change the business models in the hospitality industry (Boella & Goss-Turner, 2013). The use of franchising as market entry strategies helps organizations to spread across borders. The employee recruitment process considers foreign workers as well as new workers from the host country. The global hospitality industry comprises of hotels, restaurants, joints, resorts, events, serviced apartments, and travel/tourism. This is a highly competitive industry with countless number of employees. Motivated by the desire for productivity, profitability and strategic planning, strategic HRM takes advantage of the global environment for better business opportunity (Marler & S.L, 2013).
The hospitality industry is service oriented and it has a customer-focused approach. The penetration of global organizations across borders has its challenges and advantages. Besides creating a highly competitive environment, the global multinationals in the hospitality industry have broadened the industry by incorporating more businesses with a niche focus to business. This reorganization of HR practices incorporates global interaction and the human factor. In order to understand the dynamics in these sectors, it is important to define the HR elements of an organization (Thompson, 2011). It is also crucial to look at the market factors, which influence HRM practices. These are significant in the implementation of strategic management and reduction of mismanagement causes.
The high failure rate of mismanaged organizations in the global environment is due to human factors. Among them are employee and leadership issues. Poor working conditions, disgruntled workers, employee harassment and unfair employment terms are major causes for this. Effective management of people in global organizations such as hotels calls for risk management through occupational safety. PM is about organizational objectives, and the ability to align these with the personnel factors for a competitive edge (Cummings & Worley, 2014, p. 265). The employee participation paves the way for organizational development because the workers give evidence-based information about their needs. They contribute to changes and decision-making processes for work design, talent management, continuous and transformational change. These stimulate better performance around the world.
Performance management is the effectiveness of the workforce depicted through the employee competencies and performance (Hitt, Ireland, & Hoskisson, 2012). Performance management for the hospitality industry reflects on the performance needs in the service industry. It focuses on productivity and the reinforcement of human capacity because the measures of performance revolve around people. Employees affect the processes because the business gains from quality and efficient services. People will pay more for quick booking, restaurant services, cuisine, security, and hygiene services. Competent leadership personnel ensure that the employees understand how to make the customer feel appreciated. The organization’s ability to offer great customer experience contributes to the financial performance.
The business environment calls for competent skills for HR leaders and employees. The skills should match the objectives of the organization. Research shows that behavioral attributes can define change within a group of people (Marescaux & Luc, 2012). People influence the outcome of processes. Workers who have the self-determination support the organization in its quest for successful because of the commitment and personal zeal that they have. In order to derive the best performance from the workers, a brand in the hospitality industry needs to have reliable policies. According to the Singapore Institute for Human Resource Professionals, certified leaders in HR must have the national certification (WSG, 2017).
Having capable leadership sets an example for other workers to develop their professionalism for brand equity. Some of the necessary skills required for the hospitality industry include service excellence, customer care and advanced management. All hotels and tourist departments seek to deliver excellent customer service. Having a competent team in the culinary, operations, service and management units contributes to customer satisfaction. Soft skills such as personality traits and hard skills like pastry skills are important in the industry (Adams & Sisson, 2013). These competencies may vary from one organization to another but there needs to be a balance between technical skills and individual abilities.
Selection and Recruitment
Employees prospecting for job opportunities in the global hospitality industry need competent skills in order to fit in to the strategic organizations. The alignment of skills with organizational expectations is a best practice. Competent organizations hire highly qualified personnel who portray professional and personal advantages. The Selection and recruitment of employees must relate to the required competencies. The job description for a guest service segment needs to capture service skills, politeness, and a sociable personality. Communication abilities apply across all jobs because the industry revolves around people. Hiring incompetent personnel may lead to certain risks such as negligence, which can lower the brand image (Citchley, 2017).
A rigorous recruitment process follows organizational HR policies, industry standards and global trends. It would be fruitless to invest in competent organizational structures yet compromise on important security details. Modern hospitality centers like hotels face global threats such as terrorism. Tourists visiting any area around the globe are curious to know what solutions are available. The protection of employee data is also an important move by modern organizations due to online transactions and bookings made by guests. Franchised hotels cannot ignore the value of secure shared technology in the delivery of service and management practices (Mell & Grance, 2011). Measured service is efficient because it ensures that there is maximum use of resources and employee capabilities.
The Induction Process.
The hospitality sector is about selling services to peoples. Contemporary organizations in the industry adopt strategies that enhance the customer experiences. Friendliness, courtesy and personalized services encourage customers to come back for more. As a result, organizations invest in a strategic workforce for a better turnover and employee job satisfaction. Induction lays the foundation for this plan by preparing employees for productivity through effective performance. This stage aligns the employee to the brand’s objectives, standard of operation and culture. The structuring of the induction process ensures that employees go through the organization’s procedures and policies effectively. In the hospitality industry, this becomes a challenge because of the duplication of quality services across the sub branches.
The JD process considers candidates based on their specification, advert placement, assessments and competency interviews. Employees need to agree with their leaders on the Key Performance Indicators (KPI) and how to achieve them (Maitra & Srivastava, 2016). The decision making process informs workers on the organization’s values, missions, vision and customer base. Competent operating procedures depend on the skills portrayed by the employees. The structures laid out by the brand must encourage effective interaction by employees for performance. The management team sets the goal from the moment an employee joins the organization.
Training and Talent Management.
Different personnel have individual abilities and competencies, which complement their professional training. It is the role of the Human Resource Management to tap into these abilities for the better of the organization (Dries, 2013). Training fills in the gap between skills gap and organizational needs. Basic training in the use of technology tools such as tablets, smartphones and technology devices is important. Contemporary approaches in management and operations include the use of software service applications for efficiency. These are systems configured with customized settings for internal usage. Employees need training on how to use organizational databases for different records including customer care data (Linoff & Berry, 2011, p. 68).
Strategic Human Resource Management (SHRM) advocates for the incorporation of technology in the management of relationships. Global businesses in the hospitality industry need efficient approaches. The electronic HRM simplifies the functions of managing people in the organization (Fisher & Marler, 2013). Such investment makes service delivery, knowledge and change management much easier. Technology systems such as cloud computing systems vary from one industry to another organization, internal systems and available resources for its purchase and maintenance. The implementation of electronic services in HR practices boosts other performance strategies like better HR policies and a good reward system.
HRM in Hospitality
In the global market, large, medium and small organizations have a level playing field within the e-commerce platform. However, the political, economic, social, technological and legal factors influence the business world (Fernandez, Cala, & Domecq, 2011). Diversity characterizes the hospitality industry because of employees working in foreign countries. The cost factor influences outsourcing of employees for the hospitality industry. These are workers from different parts of the world. New business ventures such as the cruise business is an example of a plan, which devises new ways of doing business, there by bringing a new dimension into the industry (Davidson, McPhail, & Barry, 2011).
Potential employees seeking jobs in the multinationals have to acquire marketable skills such as language, communication, concierge and guest service skills. Some of the new competencies for the industry include IT skills (Okumu, Cobanoglu, Berezina, & Bilgihan, 2014). These prepare graduates for the changing and competitive market. There are data systems for different departments in the hospitality industry including the revenue collection, customer communication, rewards systems and other management practices. Although there are technology programs for the industry at large, the sector also has technology for employees such as email communication, and office applications. Employees in the service sector also need a grasp on end user technology such as Wi-Fi technology, infrastructure set up for coffee house customers and digital conference halls for hotel facilities. These are the leading revenue collection points for most global hotels (Shashou, 2016). Graduates from the hotel industry also need literacy in data management and problem solving systems.
One of the main reasons for having an effective reward system is to retain employee. As a significant contribution to improved productivity in the hospitality industry, it encourages employment creation (Makoto, 2011). The HR systems use of financial and non-financial rewards targets employee job satisfaction and organizational strategies. For example, employees working in foreign countries may require extra security details and health benefits for themselves and their families. Although modern organizations have competent pay systems in place, the challenge arises in the identification of the right package for the employees (Teng, Bustamam, & Abdullah, 2014). There is not set standard for specific pay in the industry therefore organizational and legal frameworks in the region of operation determine the earnings.
Employees find motivation from incentives in the reward systems. Managers and junior employees appreciate recognition for great performance and achievement. The HR unit needs to reward its employees across different levels using strategic methods. An effective method supports unity within the organization and it gives the organization an identity. Creating a culture of recognition is not easy because it faces challenges of misuse and exploitation. When some workers are favored without merit, other employees may feel sidelined and discriminated against. Fairness motivates the workers while an inconsiderate system destroys the motivation of employees. Pay for performance stirs up the passion for the employees to perform and group incentives may sometimes work better than individualized rewards (Eijkenaar, 2013).
Organizations have policies that enhance performance by encouraging employees. However, these processes may serve as a disadvantage if employees are discouraged in the same rules (Kersley, et al., 2013, p. 37). The relationship between managers and employees traditionally has had contentions because of the challenges in employee relations. The development of HRM from Personnel Management practices was for improving the relationship between the employee and the organization. Policies regarding employment range from recruitment, induction and the reward systems. The HR department needs a comprehensive approach that considers the organization’s goals and objectives. The competition in the market system also influences changes in the policies.
Dealing with diversity is harder because of the employee cross-cultural background. Employee sign different employment contracts. Some have temporary contracts while others have long-term contracts. Employment laws should have information about legal procedures for hiring and relieving employees. This reduces conflicts within the organization. HR management governs HR positions, structures, leadership, and practices (Kersley, et al., 2013, p. 275). The policies, guide the managers on when to train, outsource, collaborate and restructure HR functions. Companies have come under attack for relieving employees illegally. There are national laws to guard against unfair dismissal and business change (Victoria, 2017). The flow of skilled workforce across the globe makes immigration a global issue of concern. This means that employment policies need auditing and integration with the employment systems in the modern business world.
Cultural factors and people management
Culture is a significant factor in complex global organizations because it affects the emotional labour and consequently job satisfaction (Gursoy, Boylu, & Avci, 2011). Employees from different nationalities have diversities in values, lifestyle and language elements. Although a hotel may have its organizational culture, it cannot ignore differences in people. Global leadership tactics start with the management of people skills (Mendenhall, 2012). Knowledge management across franchised units needs an effective system of knowledge management. The diversities in language calls for translations in cloud computing as well as communication plans. A director who runs cross-cultural teams needs a leadership plan that considers the employee diversities.
Cultural management in the hospitality industry faces challenges of discrimination. The impact of insecurity matters like terrorism poses a challenge for employee from certain religious and cultural backgrounds (Bratton & Gold, 2012). However, most national regulations encourage fairness in job appointments and allocations in order to give a gender balance. Communicating the organization’s goals also needs to be clear because the hospitality industry tends to have scandals about the integrity of their businesses (Chung, 2017). Employees have the power to discredit a multinational for mistreating its employees.in cases where the organization exploits immigrants because of cheap labour, the company risks losing on its reputation and brand equity. As part of social responsibilities credible organizations embrace ethical strategies which include respect for employee rights. The leader’s code of conduct influences customer perception. Brands, which have a negative image, find it hard to succeed in business.
The SERVQUAL model of strategic management provides an approach for the management of quality in the service industry (P & Spenser, 2011). This helps the organization to reach its goals and objectives whether in the food & beverage, transport or tourism industry. The interaction between key players in the industry is important. The customer, employee, manager and government represent the critical stakeholders in the hospitality sector. Paying employees well encourages quality in services within the organization. The service industry values the delivery process. As a result, the employee motivation becomes an integral aspect in performance. Employees as direct connections to the customer facilitate for target marketing strategies through cluster detection approaches and interaction with them (Linoff & Berry, 2011, p. 499).
The hospitality industry has broadened its scope of operations. The growth of new business segments in the hospitality industry such as cruise ship, events and transport transcends the traditional classification of hospitality into food and beverages, lodging, tourism and recreation. As a result, there are changes in the management of its management practices. Of particular interest is HRM, which now has various connotations such as Strategic Human Resource Management, e-HRM among others. Therefore, there are visible challenges in the human resource strategies, practices, policies and functions. Among the solutions to these hindrances is the acceptance of cross-cultural factors. The hospitality industry comprises of a large number of foreign workers who travel for work assignments in foreign countries. Whether the search for employment is in the tourism or hotel industries, attractive human resource practices entice skilled personnel.
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